- Shiba Inu’s Layer-2 solution Shibarium Beta launched ‘puppynet’ testnet.
- Following the BTC rally, SHIB spiked by 3.3% in the last 24 hours.
- Shibarium’s Bone ShibaSwap (BONE) reclaimed $1.50 crucial resistance.
The popular canine token Shiba Inu (SHIB) managed to escape the formation of the gloomy death cross, which usually indicates that the bears are trying to take long-term control over the cryptocurrency. Such formation happens when the short-term moving average (MA) crosses below a long-term average and is opposed to the Golden Cross.
The latter occurs when the short-term average price moves upwards from the longer-term price. While usually it’s deemed a clear bullish signal, there were occasions when the Golden Cross couldn’t hold breakout rallies, only to reverse to the previous price range.
Can Shiba Inu Stay In The Bull Lane?
The recent crypto market rally paints a brighter picture for the leading asset Bitcoin (BTC), and the largest alternative currencies. As the consequences of last week’s bull trap are fading away, Shiba Inu is looking to set up a continuation pattern after the consolidation period.
The bull pennant pattern uses two converging lines for consolidation prior to the breakout. In technical terms, if the crypto candlesticks form a bullish pennant with sufficient Relative Strength Index (RSI), other technical signals also should be considered before making a decision.
The bullish pennant is not to be confused with bullish divergence, which signals the breakout probability after bears take over the charts. Actually, a bullish divergence occurs when prices fall to a new low while an oscillator gradually forms lower lows.
Bullish Momentum Finds SHIB & BONE
In addition, Shiba Inu’s data metrics suggest bullish momentum with a larger concentration of whales. While Ethereum & BSC Whales are actively accumulating SHIB since the Shibarium Beta launch, around 33% of all canine token holders are now In The Money, according to the IntoTheBlock crypto data tool.
That’s an 11.92% increase since last week, largely driven by the fact that SHIB managed to reclaim the next immediate resistance line on the macro scale at $0.000011. At press time, the #14 ranked memecoin is changing hands at $0.00001119, with 3.3% gains in the last 24 hours.
On the other hand, Shibarium’s gas fee token Bone ShibaSwap (BONE) also inked 3.6% in the green but is yet to recover from last week’s pullback from its key support levels hovering around $2. At the time of publication, #123 ranked Shiba Inu’s BONE trades at $1.53, having lost 11.1% of its value in the last 7 days, according to CoinGecko.
On the Flipside
- In a recent price action pattern study by Cody Hind, the Bullish Pennant was deemed the least reliable price action pattern with only a 54.87% success rate across 200,000 trading platforms.
Why You Should Care
The Shiba Inu Ecosystem is set to become a self-sufficient blockchain via Layer-2 Shibarium.
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